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Why would a company need to use the alternate approach

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Reference no: EM133228323

For consolidated companies, EPS is usually determined by dividing the consolidated net income by the parent company's outstanding shares of stock and convertible instruments. However, there are instances in which this method may not apply, and an alternate approach must be used.

Why would a company need to use the alternate approach? What are the fundamentals of this approach? How would a company calculate EPS using this approach?

Reference no: EM133228323

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